Fintech startup MobiKwik files for Rs 700 Cr IPO with SEBI

MobiKwik, the Gurugram-based fintech startup, is looking to raise Rs 700 crore through an initial public offering (IPO) after it refiled its Draft Red Herring Prospectus (DRHP) with capital market regulator the Securities and Exchange Board of India (SEBI) on Thursday.

This will be a fresh issue of equity shares with no offer-for-sale component and will be done through the book-building process, MobiKwik said in a statement. The IPO also is of a reduced size as Mobikwik had earlier filed for a Rs 1,900 crore issue in 2021.

MobiKwik said that in consultation with the book-running lead managers, it may consider a further issue of specified securities, including private placement, preferential allotment, rights issue, or any other method aggregating to Rs 140 crore as "Pre-IPO placement". If such placement is completed, the fresh issue size will be reduced, it added.

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The fintech startup said the proceeds from the fresh issue to the extent of Rs 250 crore will be used for growth in the financial services business; Rs 135 crore for the payment services business; Rs 135 crore for investment in data, ML and AI, product, and technology; Rs 70.28 crore for capital expenditure for the payment devices business, and general corporate purposes.

Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik provides an array of payment and financial services for businesses and merchants and operates a B2B payment gateway for ecommerce businesses. It has also received the Reserve Bank of India's approval for its Payment Aggregator business. As of September 30, 2023, the company has 146.94 million registered users.

For FY23, MobiKwik reported a revenue of Rs 539.47 crore compared to Rs 526.56 crore in FY22. It reported a loss of Rs 83.81 crore for FY23, a 35% slump from Rs 128.16 in FY22.

For the six months ended September 30, 2023, the company's revenue from operations stood at Rs 381.09 crore and profit after tax stood at Rs 9.48 crore.